Tom Albanese, CEO of the multinational mining and metals corporation Rio Tinto Group, resigned after the company revealed a $14 billion writedown of value with two recent acquisitions.

After 20 years with the company, the acquisitions of Canada's Alcan aluminium group and Mozambique coal miner Riversdale put an end to Albanese's career at the mining giant.

Sam Walsh, the head of the company's iron ore division, will replace Albanese.

"[Alcan] was always a bad deal, and Albanese was lucky not to carry the can for it back in 2008," one of Rio Tinto's 10 largest investors said. "Mozambique is more of a surprise, but the industry's record on acquisitions is appalling, and Rio is not alone in destroying shareholder value."

Rio paid $44 billion (including debt) to buy Alcan in 2007 and was left with debts and a $15.2 billion rights issue (Clara Ferreira-Marques, Toronto Globe and Mail, Jan. 17). -- MM